Budget financing of investment projects at the high-technology industry enterprises: Project implementation technology and risk mitigation

Abstract

As a rule, large-scale investment projects in high-tech industries are implemented with the participation of the state. The procedure and terms of coordination of the budget financing volumes and forms take a considerable amount of time (sometimes up to two years), and its results, when approved, are not subject to review. During this time, the baseline data on the project undergo changes leading to an increase in its value, thereby increasing the risks of successful project implementation. Thus, the company needs to secure additional financing at its own expense in order to eliminate negative consequences by increasing the project value. This situation can be resolved by using a redundancy mechanism that allows an enterprise to gradually accumulate funds to cover the increasing project costs. The availability of the reserve fund increases the sustainability of the project in terms of the dynamic external environment and leads to the mitigation of risks in its implementation.